Qantas is cutting 1,000 jobs after announcing a shock profits warning.
The Australian airline predicted a half-year loss of up to A$300 (£165 million) for July to December.
The airline said trading conditions had seen a “marked deterioration” amid tougher competition and slowing demand.
Chief executive Alan Joyce said the airline was facing “immense challenges”.
“Our November figures have shown us that there continues to be deterioration in the revenue performance of the business and our competitor [Virgin Australia] has just received $350m, meaning they can continue their uncommercial behaviour,” he told a media teleconference after the announcement.
“We are putting all options on the table in a review of our structure.”
The company’s share price fell 14.1% after the announcement. Qantas also said the outlook for its January to June period in 2014 remained “volatile”.